IGI Logo

Below is quote on Dr. Lal Path labs acquisition of Suburban Diagnostics for ₹1150 crores by Mr. Yash Gupta, Equity Research Analyst, Angel One Ltd   

Dr. Lal Pathlabs Board of director approves acquisition of Suburban Diagnostics

Board of Directors of Dr. Lal Pathlabs Limited approves acquisition of 100% stake in Suburban Diagnostics (India) Private Limited.
Suburban Diagnostics is a diagnostic chain having a presence in western India ( Maharashtra), engaged in the business of establishing, maintaining, running and managing diagnostic centres. Suburban Diagnostics has reported a turnover of 294.7 crores in FY 2020-21 up by 82% YoY. Dr. Lal Pathlabs acquire Suburban Diagnostics in a cash deal of ₹1150 crores which includes fixed payment of ₹925 crores and certain performance linked payments of ₹225 crores.
This is very positive news for Dr. Lal Pathlabs, we expect the company will utilize its internal accruals for this acquisition. The deal has been done at a valuation of 3.9 times to sales and 20 times of EBITDA. We have a neutral rating on Dr. Lal Pathlabs Limited.

Above views are of the author and not of the website kindly read disclaimer